MrBowl
Well-known member
-1.5-2% day one, -0.5%. day two, roller coaster pit of the stomach drop day 3 at -2% right out of the gate on the open. heavy 3 day down pressure.
if one sees that then one pushes all their chips in before noon on day 3. dream profit scenario, no way to lose. it will bounce back on days 4 and 5 for a quick 2-4% gain. if it doesn't bounce right back at least you missed out on the first 5% haircut. if it never bounces back then it don't matter, the digital money flying through the ether at light trading speed was worthless to begin with. get your rocks and sticks and mud huts here.
that is the market action i look for. that cycle. rarely does it happen over such a great range 6%. it does happen frequently within a tighter range say 1-2.5%. that is your money maker right there, if it flashes and you see it then don't hesitate or overthink, just hit it. then gtf out, back to the bunker, count and stack your new supply of mre's or cans of alpo, clean your trading guns. you only get to shoot them once a month. be ready.
that is my entire trading strategery in a nutshell. i depend on a range of tsp investor's sentiment and allocation to inform me when a good wave might be coming. if you've spent time on a boat or the flat bare prairie then you know the wind always changes just before a storm hits. that is what you watch for.
When this happens, and so far you are spot on, I try to get out at the topping pattern (easier said than done) and be out during the cascade. When we finally see two up days in a row in the S&P I consider that the dead cat bounce, wait two more days, then jump in. Sometimes we see lower lows after the dead cat bounce and the lower buy in day comes 1-3 days later. Since we are limited on IFTs I wait to buy in. Of course, the market doesn't like to make it so easy too often so this strategy isnt optimal sometimes.